Contrasting Palo Alto Networks (PANW) & Infosys Limited (INFY)
Palo Alto Networks (NYSE: PANW) and Infosys Limited (NYSE:INFY) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
This is a summary of current recommendations for Palo Alto Networks and Infosys Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palo Alto Networks||1||12||27||0||2.65|
Palo Alto Networks presently has a consensus price target of $159.53, indicating a potential upside of 11.04%. Infosys Limited has a consensus price target of $15.92, indicating a potential upside of 9.17%. Given Palo Alto Networks’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Palo Alto Networks is more favorable than Infosys Limited.
Institutional and Insider Ownership
77.1% of Palo Alto Networks shares are held by institutional investors. Comparatively, 19.9% of Infosys Limited shares are held by institutional investors. 4.8% of Palo Alto Networks shares are held by company insiders. Comparatively, 22.4% of Infosys Limited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Palo Alto Networks and Infosys Limited’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Palo Alto Networks||$1.65 billion||8.00||-$152.80 million||($2.45)||-58.64|
|Infosys Limited||$10.36 billion||3.23||$2.81 billion||$0.96||15.19|
Infosys Limited has higher revenue and earnings than Palo Alto Networks. Palo Alto Networks is trading at a lower price-to-earnings ratio than Infosys Limited, indicating that it is currently the more affordable of the two stocks.
This table compares Palo Alto Networks and Infosys Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palo Alto Networks||-12.57%||-19.08%||-5.00%|
Infosys Limited pays an annual dividend of $0.35 per share and has a dividend yield of 2.4%. Palo Alto Networks does not pay a dividend. Infosys Limited pays out 36.5% of its earnings in the form of a dividend. Palo Alto Networks has raised its dividend for 4 consecutive years.
Volatility and Risk
Palo Alto Networks has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Infosys Limited has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.
About Palo Alto Networks
Palo Alto Networks, Inc. offers a next-generation security platform. The Company’s security platform consists of three elements: Next-Generation Firewall, Advanced Endpoint Protection and Threat Intelligence Cloud. Its Next-Generation Firewall delivers application, user and content visibility and control, as well as protection against network-based cyber threats integrated within the firewall through its hardware and software architecture. Its Advanced Endpoint Protection prevents cyber attacks that run malicious code or exploit software vulnerabilities on a range of fixed and virtual endpoints and servers. Its Threat Intelligence Cloud provides central intelligence capabilities, security for software as a service applications and automated delivery of preventative measures against cyber attacks. Its products and services include firewall appliances, panorama, virtual system upgrades, subscription services, support and maintenance, and professional services.
About Infosys Limited
Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation. Its segments are Financial Services and Insurance (FSI), Manufacturing and Hi-tech (MFG & Hi-TECH), Energy & utilities, Communication and Services (ECS), Retail, Consumer packaged goods and Logistics (RCL), and Life Sciences and Healthcare (LSH).
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